Globalstar wins interim funding deal
Posted: Tue, Feb 18, 2003, 1:26 PM ET (1826 GMT)
Five groups of investors have agreed to provide Globalstar with $10 million in interim financing to keep the company operating, Globalstar announced Monday. The investors will provide the debtor-in-possession financing to allow the company to emerge from Chapter 11 bankruptcy protection later this year, once a final restructuring agreement is reached. Interestingly, the investors include two groups directly related with rival satellite communications companies: ICO Investment Corp, a subsidiary of ICO Global Communications; and Iridium Investments LLC, a company that represents some of the investors in Iridium Satellite. Globalstar officials said a recent ruling by the FCC to permit satellite companies to operate networks of terrestrial repeaters to augment their signals, has helped attract new investors t the company. Globalstar had announced last month a deal with New Valley Corporation, an investment company that planned to purchase a majorityshare in the company for $55 million, but Globalstar's creditors vetoed the deal two weeks later.
Five groups of investors have agreed to provide Globalstar with $10 million in interim financing to keep the company operating, Globalstar announced Monday. The investors will provide the debtor-in-possession financing to allow the company to emerge from Chapter 11 bankruptcy protection later this year, once a final restructuring agreement is reached. Interestingly, the investors include two groups directly related with rival satellite communications companies: ICO Investment Corp, a subsidiary of ICO Global Communications; and Iridium Investments LLC, a company that represents some of the investors in Iridium Satellite. Globalstar officials said a recent ruling by the FCC to permit satellite companies to operate networks of terrestrial repeaters to augment their signals, has helped attract new investors t the company. Globalstar had announced last month a deal with New Valley Corporation, an investment company that planned to purchase a majorityshare in the company for $55 million, but Globalstar's creditors vetoed the deal two weeks later.
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